What are the requirements of the Directive?

The Directive will require companies to conduct due diligence on human rights and environment-related issues in their operations and supply chains.

Requirements

Policies

Integrating due diligence into policies and management systems

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Risk assessment

Identifying adverse human rights and environmental risks in own operations, subsidiaries, and supply chain

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Risk management

Preventing and minimising potential adverse impacts

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Remediation

Ending or minimising actual adverse impacts

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Grievance mechanism

Establishing and maintaining grievance procedures

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Monitoring and evaluation

Monitoring the effectiveness of your due diligence measures

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Communication

Publicly communicating (reporting) on due diligence activities, in an annual report published on your company’s website

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While your business might already have some of these processes and activities in place, establishing cohesive due diligence systems is a lengthy and complex process. Proactivity in the face of upcoming requirements will help your business meet the new deadlines or customer demands.

Human rights and environmental issues to consider

Examples of the human rights and environmental issues the EU Directive might expect your company to address in your operations and supply chain due diligence include:

  • Forced labour, the worst forms of child labour and other forms of modern slavery
  • Freedom of association
  • Health, safety and hygiene
  • Gender equality and discrimination
  • Bribery and corruption
  • Land use and indigenous rights
  • Greenhouse gas emissions

Learn more about managing social and environmental risks.

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